TheShakeOut

EURUSD: Demand could be absorbing supply at these prices

CME:E61!   EURO FUTURES
The chart tells a story and the story unfolds bar by bar.
timwest PRO
2 years ago
Quick comment on Bar#51: When volume increases and the range "decreases", it means that sellers are running into buyers (from my experience) and a low is at hand very soon. Would you agree?
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timwest PRO
2 years ago
Another comment on bar#44: Volume decreased and range increased, signaling a loss of buying strength. The new high was a short-covering blow-off, which was confirmed the next bar with the immediate weakness. (Hope you don't mind the comments, again, just how I view it when I tell the story to myself as the bars unfold).
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TheShakeOut timwest
2 years ago
Thank you for your comments @timwest. I appreciate hearing your opinion, having this discussions is good for the community.

On bar#51, the previous bar was bar#50 (May 24th), it was no supply bar. May 24th was a holiday in the US and low volume was expected, however the activity that happens on these days is usually very important. Bar#50 has been deleted from Tradingview data feed at the moment, I reported the issue to the site. You can see the analysis of bar#50 on this link:
EURUSD showing no supply with the lowest activity of the year


If you look at bar#51 on the hourly chart you can see at least three high volume down bars with signs of possible professional demand entering the market. Since the market is pushing through support this high volume could also be supply absorbing demand, so we need to wait for more confirmation. Bar#52 confirms that there is some strength on bar#51.
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TheShakeOut timwest
2 years ago
Bar#44 is an upbar closing on the highs with increasing spread (range) and decreasing volume, that is a sign of lessing of buying pressure and lack of professional interest of higher prices. I agree with you on that. However, the low of the bar is lower than the previous bar, that is a sign that the market was marked down on the open of the bar to attract sellers and it did not take much effort to overcome them. So this bar is giving us mixed signs, I decided to label it as a strong bar because it failed to respond to the weakness on the previous bar (bar#43). I commented a bit more about this bar on this analysis:
EURUSD: Demand overcoming supply below key levels

The market did not show confirmation of the strength, instead bar#45 give us more signs that there is supply hitting the market and Bar#46 confirmes it.

Feel free to comment any bar or analysis. These discussions are welcome.
+1 Reply
TheShakeOut TheShakeOut
2 years ago
I have just posted an update to this analysis including a more elaborated analysis of bar 44 and 51 (it has been renamed to bar 50). I hope you find it interesting, regards.
EURUSD testing supply on high volume bars in the background
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